Garnishee notice restraint modified where no recovery was being pursued and the bank funds were needlessly frozen.

Ad-interim restraint on a garnishee notice was modified where the underlying challenge to the Maharashtra Tax (Amendment and Validation) Act, 2017 was pending before a Larger Bench and the State stated it would take no coercive steps. The Court noted that no amount was being recovered under the notice, that similarly situated petitioners had not been singled out, and that the petitioner's financial viability supported relief. It accepted that keeping the bank account amount locked served no useful purpose when recovery was not being pursued, and continued the restraint in terms of the petitioners' prayer while recording the State's assurance against coercive action.

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Issues: Whether the ad-interim restraint should be modified by staying the garnishee notice and permitting use of the bank account amount pending decision of the Larger Bench.

Analysis: The petitions raised a challenge to the Maharashtra Tax (Amendment and Validation) Act, 2017 and were pending consideration before the Larger Bench. The State stated that it would not take coercive steps and that no amount was being recovered under the garnishee notice. The Court noted that no similar garnishee notice had been issued against the other similarly situated petitioners and found no special reason for singling out the present petitioner. The Court also accepted the affidavit regarding the petitioner's financial viability and considered that keeping the amount locked served no useful purpose when the State itself was not proceeding to recover it.

Conclusion: The ad-interim order was modified and the restraint was continued in terms of the petitioners' prayer, while the State's statement that no coercive steps would be taken was maintained.

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